D2.2 Specification of Business Innovation Reference

D2.
2 Specification of
business innovation
reference frameworks (in the
context of the VEMF)
Andrea Rossi (ATOS), Benjamin
Knoke (BIBA), Nesat Efendioglu,
Robert Woitsch (BOC)
Co-funded by the European Commission, contract n FP7-ICT-285746

Document type
Deliverable
Document version
Final
Submission Date
07/09/2012
Dissemination Level
Public
Author(s)
Andrea Rossi (ATOS), Benjamin Knoke (BIBA), Nesat

Efendioglu, Robert Woitsch (BOC)
File Name
D2.2 Specification of business innovation reference.pdf
Project Acronym
BIVEE
Grant Agreement n.
FP7-ICT-285746
IST Project Number
285746
Project Title
Business Innovation in Virtual Enterprise Environments
Project Duration
Website
36 months
:
www.bivee.eu
Deliverable D2.2
Specification of business innovation reference frameworks (in the context of
the VEMF)
CHANGE HISTORY
Version
Date
Status
Author (Partner)
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Description
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EXECUTIVE SUMMARY
This deliverable describes the BIVEE theoretical approach towards innovation activities and a
common production management, introducing three main reference frameworks: one as
guidance for innovation projects with respect to different areas of innovation, a second one
explaining the specifications of the Virtual Enterprise and structuring production processes,
and a third one for measuring innovation and improvement activities. The overall BIVEE
framework is therefore designed in the context of and for the Virtual Enterprise Environment.
The objective of this task; T2.2, is to provide theoretical guidance for the WP3 and WP4 that
require a clear directive to build and validate the Mission Control Room and Virtual Innovation
Factory. This deliverable elicits therefore functional specifications for WP3 and WP4,
specifications that will be acquired in the design deliverables of such work packages. It is as
well relevant to note that this deliverable has been produced in alignment with the BIVEE end
users and the deliverables of WP7, constantly collecting their feedback and practical vision.
This deliverable introduces an important theoretical framework, the VEMF, necessary to setup
the Virtual Enterprise and the spaces that form its environment. In each space the production
processes are respectively described in an attempt to define the structures and patterns.
Another relevant framework, the BIRF, is then introduced and defines the difference between
the individual areas of innovation. It maps a set of input/output templates to refer to, when
handling different types of innovation. Moreover, it introduces the concept of the four waves
of innovation and provides a reference framework for innovation projects.
Finally a Monitoring Framework is created, in order to elicit specific KPIs for both the
production and innovation. Also in this case, this elicitation occurred with the pragmatically
view and help of the BIVEE end users.
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TABLE OF CONTENTS
CHANGE HISTORY .........................................................................................................................4
EXECUTIVE SUMMARY ...................................................................................................................5
1 INTRODUCTION TO THE BIVEE FRAMEWORK ...................................................................................8
1.1 Differentiation between Innovation and Improvement ................................................... 8
1.2 Main Activities within the BIVEE Framework ................................................................... 9
1.3 Content and Relations of the Sub-Frameworks .............................................................. 11
1.4 Overview on the Innovation-Part of the BIVEE Framework ............................................ 11
1.5 Overview on the Production-Part of the BIVEE Framework............................................ 13
1.6 The Knowledge Circle between BIS and VPS .................................................................. 14
2 VIRTUAL ENTERPRISE MODELLING FRAMEWORK (VEMF) ................................................................ 15
2.1 VEMF: The Virtual Enterprise Framework (VEF) ............................................................. 15
2.1.1 The Value Reference Model ................................................................................... 15
2.1.2 Processes of the Plan and Govern Section of the VRM............................................ 16
2.1.3 Applying the VRM to Compile the Virtual Enterprise Reference Framework (VEF) .. 17
2.2 VEMF: Modelling Framework for Production Processes ................................................. 19
2.2.1 Supply Chain Operations Reference-Model ............................................................ 19
2.2.2 Value Production Space Methodology based on the Waterfall Model .................... 20
2.2.3 Production Processes within the Virtual Enterprise ................................................ 22
2.3 Handling of Improvement Processes in Virtual Enterprises ............................................ 29
3 THE BUSINESS INNOVATION REFERENCE FRAMEWORK (BIRF) .......................................................... 30
3.1 BIRF: Reference Framework for Innovation Projects ...................................................... 30
3.1.1 Innovation Waves & Innovation Gates ................................................................... 30
3.1.2 Innovation Activities within the Virtual Enterprise.................................................. 31
3.2 BIRF: Templates for Input/Output-Mapping of Innovation Types ................................... 36
3.2.1 Different Areas to Categorize Innovation ............................................................... 37
3.2.2 Structure of the Input/Output Templates of the BIRF ............................................. 37
3.3 Innovation Documents & Patterns ................................................................................ 38
4 THE MONITORING FRAMEWORK (MF) ......................................................................................... 40
4.1 Applying KPIs to Manage Innovation and Production .................................................... 40
4.1.1 Structure of the Monitoring Framework ................................................................. 40
4.1.2 Common Business Objectives for KPIs .................................................................... 40
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5 IMPLICATIONS FOR THE MRC AND THE VIF ................................................................................... 42

5.1 The Mission Control Room (MCR).................................................................................. 42
5.2 The Virtual Innovation Factory ...................................................................................... 43
6 CONCLUSION........................................................................................................................... 45
7 REFERENCES ............................................................................................................................ 46
8 ANNEXES................................................................................................................................ 47
1.
Tables of the Virtual Enterprise Modelling Framework (VEMF) ................................... 47

1.1.
Tables of the Virtual Enterprise Framework (VEF) ................................................ 47
1.2. Table for Modelling the Production Processes ..................................................... 48

2. Tables of the Business Innovation Reference Framework (BIRF) ................................. 49
2.1. BIRF: Reference-Tables for Innovation Activities .................................................. 49
3. Tables of the Monitoring Framework (MF) ................................................................. 56
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1 INTRODUCTION TO THE BIVEE FRAMEWORK

This deliverable aims to introduce & describe the theoretical BIVEE Framework as a whole and
its three sub-frameworks by which is composed: the Business Innovation Reference
Framework (BIRF), the Virtual Enterprise Modelling Framework (VEMF) and the Monitoring
Framework (MF). The BIVEE framework does not have the pretence to be universal, but it has
been created within the scope and according to the goals of the project. In many areas and
aspects, the BIVEE framework does not want to re-invent the wheel on a theoretical level, but
uses and adapts well know scientific theories and models (e.g. SCOR, VRM, the Waterfall
Model). It is innovating in the aspects that are relevant to the project, which are mostly related
with the Virtual Enterprise.
Any Virtual Enterprise is defined as a goal oriented organization that aims to provide solutions
to a single project or business opportunity. Particularly, it is a temporary organization that
gathers its potential from the possibility of forming a well suited consortium [1]. We believe
that Virtual Enterprises should develop dynamic capabilities that can enable an enterprise to
achieve competitive advantage when collaborating with external partners [2], [3].
In this deliverable and more specifically in this introductory first section, using the dynamic
capability framework for Virtual Enterprise Environments, we will shed light on the innovation
and improvement activities trying to define elements that distinguish the former from the
latter: We will as well introduce new concepts (e.g. improvement phases: innovation waves,
document-base innovation cycle) for these innovation and improvement activities and the
relative spaces that the BIVEE project defines in the context of a Virtual Enterprise. To our
knowledge, Virtual Enterprise Environments have not been connected to strong theoretical
frameworks, showing the lack of theoretical relevance and empirical dissonance. So this
deliverable is a first attempt towards linking theoretical frameworks to Virtual Enterprises and
factories. In doing so, the BIVEE project introduces innovative business concepts, structures
and patterns that might be relevant for the way manufacturing enterprises will innovate in the
coming years.
1.1 Differentiation between Innovation and Improvement

The differentiation between the Value Production Space (VPS) and the Business Innovation
Space (BIS) is one of the key distinguishing elements of the BIVEE project. While ideas for
improvement are mainly created and elaborated in the VPS, pure or radical innovations
emerge from the BIS. For the construction of the framework and to understand the actions
within these two spaces, it is therefore necessary to briefly distinct, for now on a theoretical
level, between improvement and innovation.
The innovation-term has already been defined within deliverable 2.1 in sub-chapter 2.2, but a
sharp distinction to improvement is still missing. Although much research work has been done
in this area, no dominant definition exists that differs between innovation and improvement.
Improvement is often considered a similar activity to innovation, but with a less significant
change [4]. However, these terms are often mixed, as some authors use other models, and
differ between incremental and radical/disruptive innovation [5] or even use the term of
incremental improvement innovations [6].
While innovation is often described as an idea, practice, or object that is in some way
perceived as new [7], an improvement is described as a less significant change of already
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existing elements [4]. In order to create a sharper definition that allows proper differentiation
between innovation and improvement, the difference between invention and innovation can
be utilized. The innovation term addresses the whole process of successfully delivering an idea
to the market. With its elaboration towards marketability, an idea becomes an invention. With
the markets acceptance the invention then becomes an innovation (Figure 1).
Figure 1: Overview on the relations between ideas, inventions and innovations
With market performance as criteria to differ between innovation and invention, this metric
can as well applied to define the significance of an innovation. If a change is expected to create
a market advantage that forces competitors to compensate, it can be considered an
innovation. A less significant change that is expected to have a positive impact, but can be
ignored by competitors shall be considered an improvement. The expected market
performance hereby represents the opinion of the developer. These expectations have to be
considered in order to classify an improvement or innovation project already at the idea level.
1.2 Main Activities within the BIVEE Framework

The differentiation between the BIS and the VPS results in two different views on the
collaborative business. The BIVEE framework differs between improvement processes that
mainly appear within the VPS and innovation projects emerging from the BIS. The flow of these
activities is sketched in Figure 2.
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Figure 2: Overview on the main activities within the BIVEE framework
Detailed information on the framework and its relations to both of the spaces will be given in
the next chapters. The structure and central role of the PIKR as database for information
related to the collaborative innovation projects is described within deliverable 5.1 in subchapter 1.3.
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1.3 Content and Relations of the Sub-Frameworks

The BIVEE Framework is composed by three sub-frameworks. Their contents are summarized
in Figure 3. The construction of the BIVEE Framework is based on the Virtual Enterprise
Modelling Framework (VEMF). It contains the Virtual Enterprise Framework (VEF) for the
general setup of the Virtual Enterprise, and defines its production processes by providing a
modelling framework for the general structure for the operative business
Second part of the BIVEE framework is the Business Innovation Reference Framework (BIRF). It
is called a reference, as it does not enforces a strict structure, but a guiding reference to
innovation projects, because the latter usually does not progress in defined ways, especially
during the early stages of idea creation. Additional to a reference of operational activities, the
BIRF adds specific characteristics of each area of innovation by defining templates for the area
specific input and output mapping related to each activity.
Another extension is provided by the Monitoring Framework (MF), which adds metrics that are
aligned to business goals. These metrics are Key Performance Indicators that either address
the production (P-KPIs) or refer to innovation activities (I-KPIs).
Figure 3: General contents of the sub-frameworks
1.4 Overview on the Innovation-Part of the BIVEE Framework

The treatment of innovation projects by the BIVEE Framework is focussed in the Business
Innovation Reference Framework (BIRF). This relationship is visualized in Figure 4.
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Figure 4: Overview on the innovation-part of the BIVEE Framework
This interaction is based on two elements of the BIRF and the innovation part of the
Monitoring Framework (MF), which aim to provide a reference for innovation activities.
The BIRF contains innovation activities that are structured in four waves. These waves
are Creativity, Prototyping, Feasibility and Engineering, and will be described in section
3.1.1 of this deliverable. Within these waves, the feedback from the VEMF is accessed
via the Knowledge Exchange Interface.
The BIRF also distinguishes between the different areas of innovation. Process,
Product, Technology and Service Innovations are differentiated. Therefore it provides
input and output templates that are linked to the VEEs innovation activities in each
area. This part of the BIRF is described in chapter 3.2 of this deliverable.
The Monitoring Framework (MF) adds the metrics for the management of the
innovation activities of the VEE. To allow the management of innovation projects, a set
of Innovation-KPIs (I-KPIs) is applied. Each KPI is aligned to a certain business objective.
The description of the MF and the business objectives can be found in chapter 4 of this
deliverable.
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1.5 Overview on the Production-Part of the BIVEE Framework

The impact of the BIVEE Framework on the production space is shown in Figure 5. Its subframeworks are aligned similar to those for innovation activities. It consists of the Virtual
Enterprise Modelling Framework (VEMF) and the production part of the Monitoring
Framework (MF):
The VEMF contains a set of common production processes that are aligned to four
different phases. These four phases are Plan, Source, Build and Deliver. A description is
given in section 2.2 of this deliverable. The VEMF also contains the Knowledge
Exchange Interface to provide feedback to the BIRF that can be applied in the
innovation management
The Monitoring Framework (MF) contains the metrics for the management of the
production processes of the VEE. The Mission Control Room (MCR) manages the
improvement processes with a set of Production-KPIs (P-KPIs). The MF is described in
chapter 4 of this deliverable.
Figure 5: Overview on the Production-Part of the BIVEE Framework
A more detailed description of the sub-frameworks and their content will be provided in the
following sections, starting with the Virtual Enterprise Framework (VEF), as part of the VEMF.
The VEF assists in the setup of the Virtual Enterprise. This is followed by the definition of
production processes aligned to phases, as second part of the VEMF. The BIRF then provides
input and output templates for the different areas of innovation and a guidance reference for
structuring innovation projects, by defining the waves of innovation and a set of reference
activities. Finally sets of Production- and Innovation-KPIs are added with the Monitoring
Framework.
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1.6 The Knowledge Circle between BIS and VPS

The Knowledge Circle establishes the knowledge exchange interface between the Business
Innovation Space and the Value Production Space and also describes the iteratively advancing
knowledge as enabler of ideas. It is based on the SECI-model by Nonaka [8], [9], as described in
previous deliverable 2.1 The process from Combination, Internalization, Socialization, and
Externalization is carried out in both spaces, as described in Figure 6. The Exchange Dialogue is
based on the modification by Dalkir [10].
Figure 6: The Knowledge Circle between BIS and VPS
While aiming to describe the main mechanics, the knowledge circle is not meant to be a
deterministic model. Situations can occur during its operation, when some steps may be
missed out. E.g. when an innovation plan is directly perceived as not applicable, the
Internalization and Socialization inside the Value Production Space may be skipped out, and
feedback could be exchanged directly.
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2 VIRTUAL ENTERPRISE MODELLING FRAMEWORK (VEMF)

The VEMF describes the structure of the VE and its production. Therefore it is comprised of the
VEF to setup the VE and a reference model of production processes to provide the structure of
the business within the production space, forming this part of the environment. The content of
the VEMF is described in this chapter.
2.1 VEMF: The Virtual Enterprise Framework (VEF)

Prior to the VPS and the BIS, the Virtual Enterprise has to be set up. The collaborating partners
need to agree on the structure of their processes and to establish common policies and
business objectives. Due to its orientation towards the general management of value chains,
the setup part of the Value Reference Model (VRM)1 can also be applied on non-linear
networks like Virtual Enterprise Environments (VEEs). The application is described in this
section.
2.1.1 The Value Reference Model

The Value Reference Model (VRM) is an open source dictionary developed by the Value Chain
Group. The structure of the VRM model supports and enables corporations to integrate
their four critical domains: Enterprise Management, Product Development, Supply Chain
Integration and Customer Relationship Management, using one reference model to support
the vision of an integrated value chain. Key elements of the standard process VRM dictionary
include inputs/outputs, metrics and best practices. As in Figure 7 processes described by VRM
differentiate in three hierarchical levels.
Figure 7: VRM Process Map
http://www.value-chain.org/value-reference-model/
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Govern: This level is composed of decision based processes that identify and enable a value
chain by establishing the rules, policies and procedures to control the implementation of Plan
and Execute Processes.
Plan: This level is composed of processes which meets the current strategic objectives to
current resources, and produces decisions on activities to reach organizational goals.
Execute: This level is composed of processes that concern with transformation of work and
material to product or services meet to customer requirements. The processes in Execute level
operate within the limits of management criteria and parameters defined by the processes in
Plan level.
2.1.2 Processes of the Plan and Govern Section of the VRM

As stated in the previous section, the VRM is separated into three level 1 groups of processes
(plan, govern and execute) that represent the different management levels of the collaborative
business. For the setup of the Virtual Enterprise, the processes concerning the value chain
setup of the plan and govern sections are relevant (Figure 8, first line). The other elements and
processes of the execute section are replaced by the content of the BIRF and the production
model of the VEMF, which provide structure for the operative business.
Figure 8: Overview on the plan and govern sections of the VRM

The governing processes have to be executed to setup the value chain. They intend to
structure the general strategy, vision, goals & objectives of the collaboration. The governing
processes are structured into four level 2 categories:
Govern Value Chain aims to define the strategy and vision along with the common
policies. This frames the decision guidelines and rules for the collaborative business.
Govern Product Development contains the initial processes for common development
processes. The key components are the process design, governing of resources,
network structure and the development life cycle.
Govern Supply Chain is intended to manage the fulfilment process of the networks
needs. This process group focuses on supplying common production activities.
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Govern Customer Relations groups processes that aim to structure the links of the
network with external markets.
Each of these 4 governing categories contains ten level 3 processes that define the actions
needed to initially setup a value chain.
Unlike the strategic orientation of the govern section, the planning processes address a rather
tactical level. These continuing processes intend to balance the strategic goals of the network
with its current asset status. The planning processes are structured into four level 2 categories:
Plan Value Chain aims to aggregate the value chains resources to meet the strategic
goals of the collaborative business.
Plan Product Development ensures to fulfil the needs of resources concerning the
product development processes.
Plan Supply Chain is a continuous process to meet the demanded resources on the
supply chain.
Plan Customer Relations balances the sales resources with its requirements.
Each of these four planning categories contains four level 3 processes that define the actions
within each category.
2.1.3 Applying the VRM to Compile the Virtual Enterprise Reference Framework
(VEF)
The VRM represents a reference framework that provides a guideline for the management of
value chains. As value chains can be characterized as a specific type of network, some
elements apply to Virtual Enterprises as well. Especially the govern section that is describing
the setup of the value chain can be used to support the Virtual Enterprise setup.
Figure 9: The Govern Value Chain section of the VRM

The section Govern Value Chain of the VRM resembles the setup phase of a value chain that
defines a common strategy and vision as well as necessary policies concerning all common
fields of action. This set of processes has to be executed by the initiating partners of a Virtual
Enterprise as well. The policies and the prioritisation of business objectives that are defined
here are necessary for further progressing. Based on this section, the Govern Virtual
Enterprise section of the VEF can be created (Figure 10).
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Figure 10: The Govern Virtual Enterprise section of the VEF

This section contains the core processes that are to be executed by an initial VE consortium in
order to define the rules and objectives as well as the policies regarding all important areas of
business. This part defines the definition and prioritization of business objectives (GVE01) that
are important within the Monitoring Framework (MF) as well as policies that impact the
exchanged information within the Business Innovation Reference Framework (BIRF).
The definition of the network structure is a reoccurring process, as the need of resources and
competencies may change during operation. Within the VRM, this part is resembled by the
Plan Value Chain section (Figure 11).
Figure 11: The Plan Value Chain section of the VRM

This plan section is implemented into the VEF with the Plan Virtual Enterprise section, as
displayed in Figure 12. It resembles the process of matching the Virtual Enterprises resources
to its needs by gathering the requirements, assessing and aligning resources and the creation
of a business plan. The planning processes are executed whenever the needs of the Virtual
Enterprises change. This mapping is checked and used within activities of both spaces.
Figure 12: The Plan Virtual Enterprise section of the VEF

These govern and plan sections represent the Virtual Enterprise Framework. Other parts of the
VRM are either not practical or covered by other parts of the BIVEE Framework. The VEMF and
the BIRF are aligned to the operational level and replace the execute section of the VRM.
These frameworks are described in the following subchapters.
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2.2 VEMF: Modelling Framework for Production Processes

Value Production Spaces, that have heterogeneous structure, a large variety of stakeholders,
represent distributed reality of Virtual Enterprises, as written in the description of work.
Within the BIVEE project, the Value Production Space Reference Framework aims to guide ICT
supported definition, administration, customization and evaluation of its heterogeneous and
distributed environment.
ICT supported management approaches need a methodology to be introduced, used and
continuously improved.
There are two validated and accepted frameworks by industry with a supply chain
management context; the Supply Chain Operations Reference-model (SCOR) and the Value
Reference Model (VRM, as described in sub-chapter 2.1.1). Before defining/creating the Value
Production Space Reference Framework, it would be useful to take a glance at the defined
reference business processes within SCOR and VRM, respectively. Afterwards, with the
guidance of investigation on SCOR and VRM, appropriate reference processes are described.
2.2.1 Supply Chain Operations Reference-Model

SCC announces, that The SCOR-model has been developed to describe the business activities
associated with all phases of satisfying a customers demand [11].
Supply chain operations reference (SCOR), a product of Supply Chain Council (SCC) is a process
reference that proposes standard guidelines for supply chains management2. SCOR tries to
encompass in a common view all activities associated with the supply chain, from demand to
order fulfilment, and their respective flows and interactions. In order to cover the wider scope
of value chain, recent expansions have been proposed for product design (DCOR), customer
interaction (CCOR) and market modelling (MCOR) [12].
The framework is built around two basic sets: a standard library for modelling supply chain
processes, which allows companies to set up environments for collaboration and process
alignment, and a set of standardized semantically-defined metrics, which allows supply chain
managers to quantify and benchmark processes and thus to drive supply chain management
strategies.
SCOR integrates elements of business process management for the application domain of
supply chain management, covering a scope that starts with the supplier's supplier and ends
with the customer's customer. SCOR contains five primary management processes as depicted
in Figure 13 ; (1) Plan, (2) source, (3) make, (4) deliver and (5) Return. SCOR has three process
levels within his scope; (1) Top level, which defines the scope and content for the supply chain
operations, (2) configuration level, where companies chose their process configurations for
their supply chains, (3) process element level, which defines process elements, process
element information inputs, and outputs, process performance metrics, best practices, where
applicable, system capabilities required to support best practices, systems/tools. SCOR makes
aware that there are higher/lower process levels, where companies implement specific supplychain management practices, but these level are out of scope of SCOR. Mentioned five primary
2
www.supply-chain.org
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management processes are described briefly with staying loyal to SCOR version 10.0 by the
Supply Chain Council.
Figure 13: SCORE Process Map

Plan: This stage concerns with developing plans to operate supply chain. This process describes
aggregation and prioritization of requirements, inventory and capacity planning, projection of
appropriate resources to meet requirements of supply chain for long time period.
Source: This process concerns with scheduling of deliveries, reception of goods and services,
authorization payment for materials and other purchases.
Make: This process concerns with conversion of materials or creation of the content of
services. It is starting with requests for materials- linking to Source Process- and ending with
product release linking to Deliver Process.
Deliver: This process concerns with the creation, maintenance and fulfilment of customer
orders, scheduling order delivery, packing and shipment and invoicing customer.
Return: This process concerns with reverse flow of goods. The return process is composed of
identification of the need to return, the disposition decision making, the scheduling of the
return and the shipment and receipt of the returned goods.
2.2.2 Value Production Space Methodology based on the Waterfall Model

The SCOR and VRM refer to methodologies that introduce and apply supply chain and
production processes. Based on the Business Process Management System Paradigm an
iterative waterfall model has been applied for IT-supported management approaches that
introduce five processes and enable an continuous improvement.
A mapping of the introduced Business Process Management System Paradigm with SCOR and
VRM show that a mapping is possible and the introduction of the phase Evaluation is useful
in the context of BIVEE.
Hence the BMPS paradigm is applied in the context of Supply Chain Management and
Production Processes.
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As in Figure 14 depicted, the life cycle proposed by Business Process Management Systems
paradigm composed of following five processes;
Strategic Decision Process: In this decision process, based on the global competition, the
requirements of customers, stockholders, workforce, suppliers as well as economic,
technological, social, legal, and political environments, key performance objectives of virtual
enterprise are defined, design decisions, like business models, business Strategy map are
created. Moreover regarding to information gathered by Evaluation Process, strategic
decisions taken before are revised.
In the context of VPS the strategic decision processes are concerned with market analysis,
network setup and network policies.
Design Process: According to strategic decisions taken in Strategic Decision Process, products
and services are designed, detailed business processes, the organizational structure and the IT
services within virtual enterprise are constructed or defined. Furthermore regarding to
information gathered by Evaluation Process, decisions about re-designing of virtual enterprise,
re-engineering of business processes, of the organizational structure and of IT services as well
as of products and services are taken.
In the context of VPS the design process are the plan phase.
Resource Allocation Process: After in previous phase detailed business processes are
designed, organizational structure and IT services are defined in this phase allocation of
material and immaterial as well as personal resources, also IT related issues are considered.
In the context of VPS the allocation processes can be compared to the source phase.
Execution Process: In this phase execution of the business processes in real time and location
takes place. This phase observes the results of the set indicators at run time, these results are
the main inputs for Evaluation Process.
In the context of VPS the execution process can be compared with the build and deliver phase.
Performance Evaluation Process: This phase aims to monitor and analyze gained input in the
execution phase in qualitative and quantitative manner to generate input for the Strategic
Decision and Design Process.
In the context of the VPS the performance evaluation process can be compared with the
evaluation and assessment of KPIs. Hence measurement campaigns typically fall in this phase.
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Figure 14: Business Process Management Systems Paradigm
2.2.3 Production Processes within the Virtual Enterprise

The VEMF encompasses in a common view all activities associated with a supply chain and
moves Value Production Spaces toward the goals of Virtual Enterprise. The VEMF takes
guidance of the BPSM Paradigm, defining its processes with their inputs and outputs, as well as
relation among them in four process levels with following common values of SCOR and VRM.
Plan: In this process level as inputs, requirements results of the global competition, the
requirements of customers, stockholders, workforce, suppliers as well as economic,
technological, social, legal, and political environments are taken and as outputs, key
performance objectives of virtual enterprise are defined, design decisions, like business
models, business Strategy map are created. Furthermore according to strategic decisions,
products and services are designed, detailed production processes, appropriated resources
meeting production processes for each Production Unit (PU) in VPS in virtual enterprise are
defined.
Source: After products, services are designed and production processes are defined,
appropriate resources are defined in this phase allocation, providing, deliveries and logistic
works of resources are considered.
Build: As products and services are designed, production processes are defined and
appropriated resources are provided. In this process level, conversions of materials and of
immaterial into product or creation of the content of services with execution of production
process that occur in each PU take place.
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Deliver: This process level concerns order management, pricing and product configuration
through managing orders, invoicing and credits, to customer-specific packing, labelling and
shipping.
An overview on these phases and processes along with a short description for quick
referencing is given in the annex in Table 4. A deeper description for each process follows in
the next section.
Figure 15: VEMF - Overview on the Plan-Phase
VPS-P01 Sales Trend Analysis
Results of a market analysis show demand for productions. Market knowledge is generate by
different market research activities. Typically the market knowledge is implicitly available by
the assessment of experts that are familiar with the market. In order to externalise market
knowledge, BIVEE defines the market report that covers aspects like market coverage ratio,
segment growth rate or the market capitalisation. As BIVEE focus on innovation indicators on
New Product Success Rates, number of first to market, budget for new concept and known
technologies of the market player, number of market trails, number of new markets and first
to market products are relevant chapters for the market report and analysing the innovation
and improvement characteristics of the market.
These Business processes are domain specific, weakly structured and knowledge intensive.
Document-oriented output is the market report.
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VPS-P02 Order Evaluation
An order may initiate a production process it therefore needs to be evaluated, if enough

production capacities are available to fulfil the requested level of quality. First the necessary
competence to evaluate the order has to be identified. Currently used capacities and
potentially available capacities are evaluated. Policies how to deal with current production
are applied by considering the market player of the new order, the market player of current
production, the failure rate and the re-processing of orders. Risk management in terms of
blocking bottle-neck capacities such as but not limited to knowledge, special machines or
special skills, are performed.
These Business processes are domain specific, weakly structured and knowledge intensive.
Document-oriented outputs are the Order description, Resource Requirements, Costs
Analysis, and Required Production Capacity.
VPS-P03 Product Definition
This process resembles a deeper analysis of the order and the matching of products from the
portfolio to fulfil it. Based on the results of the Order Evaluation a concrete order is then
balanced into the production plan. Hence a detailed analysis of given documents is
performed.
These Business processed are domain specific, well-structured and aligned with the
documents from the order evaluation.
Document-oriented output are the Order description, Product description, Resource
Requirements, Costs Analysis, Required Production Capacity in more detail.
VPS-P04 Network Setup
Creation of a network to fulfil production demands raised by the current order and expected
future orders. Order description and available competences are used to identify competence
and resource gaps that need to be filled with network partners. Partner portfolio is
information of possible partners with their competences, capacities and history of previous
business relationships. The network setup is therefore a knowledge intensive process with
the goal to provide all required capacities for the order keeping the risk of the organisation to
a minimum and to keep the network manageable. Experts are required to keep the network
as big as necessary in terms of risks and as small as possible in terms of efficiency.
These Business process are domain specific divided in (a) well-structure processes for non
risky networks setups and (b) weakly structure processes for risky network setups that are
typically performed by experts. Important issue is the component routing describing the
production process logistics.
Network-structure is the information about the members and organisation of the VEE under
the network policy.
Document-oriented result is the competence availability of the network and the component
routing for the order.
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Figure 16: VEMF - Overview on the Source-Phase
VPS-S01 Stock Analysis
Analysis of individual stocks for purchase management is typically a well-structured. The

created network structure document is used to analyse available stock and compare to
demanded material.
These Business processes are domain-specific and well-structured.
Document-oriented result are material requirements.
VPS-S02 Supplier Selection
This includes the selection of suppliers for raw materials by applying the compliance policy to
fulfil the business plan, which both have been defined when executing the processes of the
VEF.
These Business processes are domain-specific and well-structured. They rely on previously
made experiences with suppliers and the supplier database.
Document-oriented output is the supplier selection that defines the actual supplier selection
for each resource along with the contract details and contact information.
VPS-S03 Purchase Management
This process contains the allocation of resources for production by using the material
requirements of the previous phase. Purchase Management is a highly sensible process and
hence typically very well structured and formalised, by selecting the suppliers and purchasing
the material. Depending on the amount there are typically different procedures from freely
selection of supplier to strictly rule-based selection procedures. Depending on the network
and its level of interaction from loosely cooperating entities till tightly coupled entities
there may be supplier databases with special negotiated contracts and conditions.
These Business processes are domain-specific and well structured including formal parts.
Document-oriented output is the purchase routing that defines the responsibility within the
network.
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VPS-S04 Component Storage
Storage of allocated resources is cost-intensive and hence the business processes to allocate
required resources to different storages considers several optimization strategies to keep
costs low.
Processes for component storage consider therefore an initial setup of component routing
between different partners as well as a sequence of optimization steps to distribute best the
component storage.
These Business processes are domain-specific and well structured including formal parts.
Document-oriented output is the storage plan.
Figure 17: VEMF - Overview on the Build-Phase
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VPS-B01 Component Manufacturing
The manufacturing of components is a production process that is aligned with the technology
required for the production. According to the production standards and the agreed process
policy, the production machines are configured and raw material is transformed into
components according the logistics schedule.
These Business Processes are technology-specific, well structured and in most cases
formalised to the necessary extend to be machine interpretable.
Document-oriented results are measures that are used as virtualisation instrument to
digitalise physical component production to be observed in the digital environment of BIVEE.
VPS-B02 Finishing
Final post-processing of the production are required to finish the production.

Depending on the product specification and the process policies post-processing is
performed.
These Business Processes strongly depend on the nature of the finishing process and hence
range from weakly structure processes in case senior engineers are finishing the product by
hand till well structure processes in case post-processing can be performed in a similar way
than the production process itself.
Document-oriented results are measures that are used as virtualisation instruments to
digitalise physical product finishing to be observed in the digital environment of BIVEE.
VPS-B03 Production Assembly
Assembly of components are production processes on a higher aggregation including logistics

of the parts. Similar to component production the production assembly is performed.
These Business processes are technology-specific, well-structured and in most cases
formalised to the necessary extend to be machine interpretable.
Document-oriented results are measures that are used as virtualisation instruments to
digitalise physical production assembly to be observed in the digital environment of BIVEE.
VPS-B04 Quality Control
Quality checks of manufactured goods can range from person-driven checks of critical
characteristics; grab samples to well structured sequences of criteria checks.
Depending on the product specification, the nature of the product and technology used for
production the quality control strongly varies in its nature.
Person-driven and hence human intelligent driven - checks are weakly structure and
knowledge intensive. Therefore such quality controls are used in high-end or high-risks
products or in combination with grab samples.
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With respect to the required product functionality and characteristics, well structures checks
including humans as intelligent sensors and not as interpreters of the control sequence
itself are typically aimed for standardised and repeatable quality controls.
These Business processes are therefore ranging depending on the quality control method
applied from weakly structure processes till formal structure processes that are performed
automatically.
Document-oriented results are quality control reports as well as measures that are used as
virtualisation instruments to digitalise physical assessments into the digital environment of
BIVEE.
Figure 18: VEMF - Overview on the Deliver-Phase
VPS-D01 Packing
Packaging and preparing for delivery is performed in a similar way like the production
process. Depending on the nature, size and characteristics of the product, the packing is
manually or automatically. Depending on the branding and nature of the product, the
packing has different tasks from protecting and enabling to move the product till part of the
brand itself.
These Business processes are typically well-structured and partly formal to the extent
necessary to be interpreted by machines.
VPS-D02 Order Preparation
The task of the Order Preparation process is to comissionate the packaged goods that are to
be delivered according to an individual order. Within this process these packages are put on
a common transportation tray and prepared for the following shipping process.
These Business processes are technology-specific and well structured. They depend on the
size and weight of the manufactured good along with the chosen way of transportation.
VPS-D03 Shipping
Carrier selection and shipping of manufactured goods depend on the nature of the products,
the size, the location from source and target. Shipping can range from one carrier typically
car to a sequence of different carriers including planes, ships, railway, cars or special
transport vehicles.
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Depending on the carrier the processes range from simple selection and shipping order to
complex arrangements and preparation of documents.
These Business processes therefore range from well structured processes up to weakly
structure and knowledge intensive processes.
Document-oriented output is in most cases measures as virtualisation instrument to enable
result observation of this phase in a digital environment like BIVEE.
VPS-D04 Delivery
Final release and delivery of manufactured goods is mainly performed by the different
carriers and follow therefore the rules and processes of that carrier.
These Business processes are typically well structure but rarely formal.
Document-oriented results are delivery acknowledgements as well as measures as
virtualisation instruments to enable observation of the delivery in the digital environment
such as BIVEE.
2.3 Handling of Improvement Processes in Virtual Enterprises

Innovation is the central focus of the BIVEE project. As explained within section 1.1 of this
deliverable, distinguishing between improvement and innovation is possible by the expected
impact of these endeavours. Although they appear to be similar, each one requires a specified
set of activities. While the BIVEE project focuses on Innovation activities in VEEs, improvement
processes have a rather minor role. A considerable high number of models and methods have
been developed within the area of production/process improvement, mostly in the area of
quality management, such as Kaizen [14] or the PDCA-Cycle (Plan, Do, Check, Act) [15].
While improvement is defined by its expected less significant impact, the changes made to the
production are rather small, because putting high effort in something with an expected minor
impact is fairly impractical. Due to the nature of these changes, the tools for improvement like
the PDCA-Cycle can be applied to the production within VEEs as well. This becomes possible on
a local level, when the changes are in line with the agreed business rules, plan and
compliances that are defined within the processes of the Virtual Enterprise Framework (VEF).
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3 THE BUSINESS INNOVATION REFERENCE FRAMEWORK (BIRF)

The Business Innovation Reference Framework (BIRF) focuses on the innovation projects that
are developed within the Virtual Enterprise. As the structure of such endeavours usually varies,
and the creativity-based creation of new ideas is not to be put into a strictly enforced
structure, the BIRF is intended to be merely a guiding reference to support these activities. It is
therefore entitled a reference framework. Second part is the treatment of different areas of
innovation. This chapter is structured in a brief summary of the waves, along with a description
of the reference activities, along with the input/output templates for their mapping related to
each area of innovation, concluding with a description of the BIVEE innovation documents and
patterns. The structured content is listed in the annex (chapter 2).
3.1 BIRF: Reference Framework for Innovation Projects

At this point, the BIRF aims to provide an overall theoretical structure and an overview of the
main pillars and components that, we figure, describe the actions within the Virtual Innovation
Factory (VIF). As already briefly explained in D2.1, the BIVEE project imagine the innovation
activities to be divided into four waves instead of the more classical and linear phases; here in
D2.2 we also describe what each wave contains and how we imagine they should work in
shaping the innovation cycle.
Each wave would contain a certain number of activities to be carried out in order for a wave to
be completed. Each activity would as well contain a set of documents to be filled in order to
each activity to be completed. Each document would contain certain KPI indicators to be firstly
set by the Virtual Enterprise and then met in order for the document to be considered
completed in a satisfactory way for the given idea that is progressively shaping into a project.
What fuels the Innovation Space are, in fact, ideas that are generated in the contest of the
Virtual Enterprise, and then pushed into the 4 waves looking for adjustments, business sense,
practical and economic feasibility and finally to be described in a way that can be streamlined
into the production line, that is to say in the Production Space.
In the following sections we describe more in details the above mentioned concepts of the
Business Innovation Space: innovation waves & gates, innovation activities and innovation
documents sets.
3.1.1 Innovation Waves & Innovation Gates

The BIVEE approach with respect to innovation tries to find a compromise between guidance
and freedom; since the latter is the natural nurturing ground for innovation but in absence of
the former we could encounter endless loops that are very risky in a business context. So, in
order to give for some guidance to the innovation space, the BIRF is organized into four main
waves:
Creativity Wave. This wave starts with an innovation idea or a problem to be solved,
providing a first sketchy idea to be developed and put into the business context of the
virtual enterprise undertaking it
Feasibility Wave. This second wave provides & clarifies with elements and information
in order to justify in economical and operational terms the actual undertaking & the
further development of the original idea
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Prototyping Wave. This wave puts into concrete actions the previous collected
information and elements producing a first implementation of the initial idea in the
form of a prototype.
Engineering Wave. In this wave the original idea transformed into a prototype is
attentively analysed to generate production & engineering plans.
Figure 19: The four main waves of innovation within the BIS
The four waves can be represented as in figure 8 above. The innovation waves are not in strict
sequence, they are partially overlapped and they develop in cycles. We can assume that for
example during the Prototyping Wave there may be a problem that requires a focused activity
to look back into the Creativity Wave. A goal-decomposition approach is therefore extensively
adopted in the BIRF, so there may be activities in each wave that proceed faster and can lead
to partial prototyping while other activities that are still in the Feasibility Wave. This approach
gives more flexibility and freedom to the BIS. On the other hand, what guarantees a certain
order, is the concept of gates, or innovation gates. At a given point of a wave each project
could set its own gate from which the activities of next wave could start to activate. Given the
nature of the waves, the gates are not then a fixed point but they can differ from project to
project. On the other hand, the gates assure the continuous work and flowing of the BIS, not
allowing the innovation cycle to be paralyzed at a certain point.
To give a quite simple example, the Virtual Enterprise Andromeda, will require for its project
Alpha, two activities at Gate 1 to be completed in the Creativity Wave in order to start the
Feasibility Wave, 3 activities at Gate 2 in the Feasibility Wave in order to start the Prototyping
Wave and 4 activities at Gate 3, in order to start the Engineering Wave and finally 2 activities in
order to pass gate 4. Project Beta, led by Virtual Enterprise Galaxy, prefers instead to have 4
activities in the Creativity Wave at gate 1, 2 activities at Gate 2, 3 activities at gate 3 and still 2
activities at gate 4.
Once again, this should ensure flexibility in the innovation cycle for each innovation project
and for each Virtual Enterprise that is created ad hoc for that defined project, but, at the same
time, should ensure the flowing of cycle itself.
The fourth gate is always the one that once completed would pass information and
specifications of the project to the Virtual Production Space.
3.1.2 Innovation Activities within the Virtual Enterprise

In this section we take a closer look to the innovation activities that make up each innovation
wave. We imagine that each wave should be composed by the activities as described in the
following section and listed in Table 5.
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The numerical order here does not imply a fixed sequence of the activities even though we
have sketched it as quite in logical order. For instance, the idea & solution generation does
require iterative steps with the idea & solution analysis. These iterations are based on the
outcome of the LABORANOVA3 project that focussed on the early stage of innovation.
Figure 20: The Fuzzy Front-End to Innovation

As shown in Figure 20, places a phase of knowledge exploration, which is resembled by the
Knowledge Circle (see sub-chapter 1.6), before an ideation phase with cycling idea
creation/evaluation and solution creation/evaluation activities.
The structure of the Creativity Wave also reflects results of the MIRROR-project4. The
Integrated Model of Creative Problem Solving and Reflective Learning developed in this
project is displayed in Figure 21.
Figure 21: Integrated Model of Creative Problem Solving and Reflective Learning
In general, the order and appearance of these activities can change for each innovation project
and the sequence can be changed following the specificity of these innovation projects. And if,
at a given point of the cycle, the obtained results are not satisfactory based on the indicators
set, the cycle can re-work the idea in the previous wave changing some variables and
conditions.
http://www.laboranova.com/
http://www.mirror-project.eu/
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Figure 22: BIRF - Overview on the Creativity-Wave
BIS-C01 Idea & Solution Generation
This initial activity generates an idea or many ideas and solution in the context of the Virtual
Enterprise. In this first phase many inputs can arrive from many different sources, inside the
VE, within or outside the Business Ecosystem. The ideas and solutions are here collected,
organized, classified following criteria previously set by the VE or for single innovation
project. The idea generation phase can also be stimulated via competitions or challenges
towards specific business/innovation objectives of the VE.
BIS-C02 Idea & Solution Analysis
Among the many idea previously classified, one or a set of ideas may be then selected and
more deeply analyzed, re-worked, better shaped with further contributions of different
stakeholders. During this activity we expect groups of different actors (with different
expertise) contributing and discussing around the presented ideas, maybe group them in
order to come up with the best and most viable idea/ideas in order to progress in the
innovation cycle
BIS-C03 Initial Market Analysis
In this activity a first market analysis and an initial estimation of the target market are carried
out; the objective is the construction of a real business case around the selected innovative
idea/s; this business case should as well aligned with the strategic objectives of the VE.
BIS-C04 Final Solution Assessment
We figure this final activity of the first wave as a decisional one where a final analysis of the
documents produced so far is conducted in order to take a decision of which solution or
groups of solutions are worthy to proceed to further feasibility studies and analysis. The
decision could also include the sending back of certain solutions to previous activity for
further development. Some guidelines on how to tackle the next wave for the exploitation of
the solution should also be present as a final report of this wave thus allowing a smooth
passage through the first gate of the innovation cycle.
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Figure 23: BIRF - Overview on the Feasibility-Wave
BIS-F01 Resource Analysis
In this activity we envisage an analysis and matching of the available and needed resources
within the VE to the idea selected in the previous wave; this implies a new structuring of the
VE to face the activities of this wave; the set-up of the VE and the team/s working on the
selected idea should take place in this first activity as well as the set up of the working groups
(or sub projects) engaged in the study of the feasibility of the selected idea.
BIS-F02 Feasibility Study
This activity mainly concerns the creation of a document studying the feasibility of the selected
idea. The feasibility study should include at least two main parts: technical & market feasibility
These can be done and delivered by different working groups composed by different people
with different set of skills. The progress of this report should be monitored already by a set of
predefined KPI or KPM. The result of the feasibility study is to create a first proof of concept of
the product/service/process in order to be evaluated in the following activity.
BIS-F03 Proof of Concept
This activity is a decisional one meaning that it concerns the approval or rejection of the proof
of concept created in the Feasibility Study activity. The decision by the
Innovation/Management team is as well supported by a monitoring of KPI-KPM previously set.
Based on the decision adopted, the innovation cycle should then precede either in the
preparation of the next wave passing the second gate or allow a revision of the steps
undertaken so far in case of rejection. In the latter case, the decision makers/evaluators should
identify the weaknesses of the selected idea and the activity and/or wave where the selected
idea should be sent back for improvements/refinements. If no refinement can be identified,
the idea is stored in the BIS for another point in time and for future idea recycling.
Figure 24: BIRF - Overview on the Prototyping-Wave

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BIS-P01 Resource Allocation
This is initial activity of the Prototyping wave sees a new allocation of resources within the VE
to deliver the prototype design of the selected idea. New roles are set up and new resources
searched and later allocated if not already present within the VE. New KPIs are as well set for
this new wave and each activity it comprehends. When assembled, the team is as well
searching for components and materials suppliers in order to finalize the prototype. The new
calendar schedule and a new GANTT chart should be in place for this new wave.
BIS-P02 Design Prototype
This activity encompasses the actual designing of the prototype by the assigned team. The
KPIs for this activity are monitored to assure the correct design creation and the completion
of all the required documents. After the design is completed the assigned team for the
realization of the prototype comes into action and deliver the prototype according to the
design previously received and according to the KPIs assigned.
BIS-P04 Validate Prototype
A validation of the prototype is the carried out during this final activity of the prototyping
wave choosing an actor/s chosen outside the design and realization team previously set up.
The validation occurs against the KPIs previously agreed and if feedback for improvement is
suggested, the realization team comes back in action and deliver the improvement suggested
by the validation team. After the final consultation with the validation team, another
decision is expected in this activity regarding the passing to the next wave in the innovation
cycle. As always, if the overall result of the wave is not considered in line with the KPIs
expected, the management can decide to send back the idea (now prototype) to a previous
activity or to a previous wave.
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Figure 25: BIRF - Overview on the Engineering-Wave
BIS-E01 Acquire Resources
Once again in this initial activity of a new wave there is a new allocation of resources within
the VE compatible with the competencies required for the final engineering wave. If necessary,
new competences and suppliers are acquired via search within the VE.
BIS-E02 Build and Optimize
The KPIs for this wave are set and matched with HR & Suppliers via a document of
requirements compiled by the engineering team. A sample of the production is built,
launched and optimized by the engineering team according to the production needs. A cost
analysis is as well created in order to be in line with production standards.
BIS-E03 Launch Planning
A correct monitoring of the KPIs of the previous activity should then lead to this preparation
activity where all documents of requirements for the production space are prepared and set
for the final release of the new solution.
BIS-E04 Release
Final decision regarding the end of the engineering wave is here expected with possible final
optimization of the documents for the production space.
3.2 BIRF: Templates for Input/Output-Mapping of Innovation Types

This chapter describes the templates to map the input/outputs of each innovation activities
that are related to certain areas of innovation. Therefore this section starts with a brief
description of the underlying model and describes the structure of this part of the BIRF.
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3.2.1 Different Areas to Categorize Innovation

The intention of this part of the Business Innovation Reference Framework (BIRF) is to include
the differences between certain types of innovation into the BIVEE framework. Therefore it
differs between four areas of innovation. As described within deliverable 2.1, these areas are
based on the approach of Systematic Business Innovation by Kotelnikov [13], as shown in
Figure 26.
Figure 26: Key areas of the BIRF derived from the systematic approach by Kotelnikov [13]
Regarding the more technical view of the BIVEE project, the BIRF will address only the four
areas of product, process, service, and technology innovation. The reference framework for
the activities has been designed to be valid concerning all four areas of innovation. The
differences between these areas are characterized mainly by the information that is processed
within these activities and is resembled by the input/output mapping of this sub-framework.
3.2.2 Structure of the Input/Output Templates of the BIRF

The input/output-mapping does not intend to define certain documents. Instead the BIRF aims
to define templates that resemble the content of documents and can be used as guidance,
when handling the different types of innovation. While the documents within a VEE are
defined, the BIRF is intended to serve their creation to ensure all necessary information within
the innovation and improvement activities has been taken into consideration.
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Figure 27: BIRF: Areas for Input/Output Mapping
The first part of the BIRF contains a set of activities that is defined within it. These activities
process information that either applies for all areas of innovation and improvement or is
characteristic for only few or a single area. The assignment of these information objects
defines the structure of the BIRF (Figure 27).
Regarding the technology innovation, the BIRF does not provide defined content. This
difference to the others areas is caused by the special characteristics of this area. As stated
within deliverable 2.1, a technology innovation is not impacting a market on its own, but is
usually developed closely linked to a product, service or technology innovation. Because of this
enabling role to other areas, a technology innovation or improvement should be treated
similar to the area that it is connected to. The tables containing the content of the BIRF are
attached in the annex (chapter 2).
3.3 Innovation Documents & Patterns

The BIVEE approach is document-based. As previously explained a specific Innovation Project
needs to walk through the waves and its activities before entering the VPS. It does so by
producing a number of documents for each wave and more specifically for each activity of
each wave. For each activity and for each wave we can therefore define a set of documents (or
Strategic Innovation Pattern) that needs to be followed and completed in order to start the
following activity and/or the following wave. A Strategic Innovation Pattern (SIP) is
represented by a subset of document templates, selected from the BIS Framework. The SIP
represents a guidance trace, not mandatory, that can be flexibly modified as the innovation
project proceeds and new needs / issues arise.
The innovation documents can be accomplished in any possible sequence, as long as some
precedence constraints are satisfied (e.g., cost analysis cannot be performed before knowing
the composition of a product.) as set by the SIP. Each document has quality check criteria
associated, to be used (together with the Phase specific criteria) in checking if a phase has
been accomplished.
The document templates selected in the SIP are then progressively instantiated, while the
Innovation Project proceeds. Please note that the sequencing is quite flexible and new
documents could be added if needed. Furthermore, it is possible to move forward and
backward across phases, but at the given moment each phase should be accomplished
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according to the defined criteria (local to each selected doc and global to each phase) and
certified by an assessment document.
The PIKR will store document templates for each wave. An innovation Project will use such
templates to produce (by freely using the preferred approaches) a number of documents
(variable in cardinality and length) and is concluded by an assessment report.
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4 THE MONITORING FRAMEWORK (MF)

This chapter contains the Monitoring Framework that aims to make the innovation activities
and production processes manageable. Therefore, two sets of KPIs have been developed in
order to monitor the business within the BIS and the VPS. As stated within deliverable 2.1,
these KPIs are aligned to a set of business objectives that have been developed according to
the VRM and in close cooperation with the end users of the BIVEE project. The KPIs for the BIS
and the VPS are listed in the annex within chapter 3.
4.1 Applying KPIs to Manage Innovation and Production

As stated within deliverable 2.1, the KPIs have been selected as tool to monitor and measure
the business within both spaces. They can be described as a set of variables that represent
current business aspects. Each KPI has a value that requires action if it exceeds a certain range.
These KPIs are the core part of the Monitoring Framework (MF) that is described in the
following.
4.1.1 Structure of the Monitoring Framework

The KPIs differ between the two spaces of the BIVEE Framework. The Innovation-KPIs (I-KPIs)
apply for the management of innovation projects and the Production-KPIs (P-KPIs) address the
production processes of the VEE. Within the structure of the BIRF and the VEMF, the KPIs are
aligned to the activities taking part within. Each I-KPI is assigned to a wave, a certain activity,
business objective, name, unit of measurement and a brief description about its content. Each
of the P-KPIs is assigned a phase, process, business objective, name, unit of measurement and
short description. The business objectives are described in the next subchapter.
4.1.2 Common Business Objectives for KPIs

The KPIs of both spaces are aligned to a common set of eight business objectives. These
objectives have been developed out of the VRM and in close cooperation with the end users of
the BIVEE project. These business objectives are listed in Table 1 and described in this section.
Table 1: Business Objectives of the Monitoring Framework
Name
Description
Reliability
The objective of constantly achieving operative goals
Velocity
The objective of fast reaction and short cycle times
Adaptability
The objective of being able to adapt to varying external or internal

demands
Cost Orientation
The objective of operating on minimal costs
Asset Orientation
The objective of generating tangible and intangible profit
Innovative Potential
The objective of successfully carrying new ideas to the market
Customer Orientation
The objective of satisfying customers
Network Orientation
The objective of a maximal efficient network

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Reliability describes the ability of the network to constantly achieve its operative
goals. It has a reversed relationship with the error rate of the outcome of the
measured activities.
Velocity aims at a low duration of the measured activities. The cycle time of each
activity is a typical KPI that can always be measured and describes the time needed
between the start and the end of an activity.
Adaptability is the ability of the VEE to react to varying demands that arise from
external or internal reasons. This can be for instance an increased demand for a higher
production rate or quality within a certain time frame.
Cost Orientation comprises the KPIs that measure the negative financial dimension of
expenses. A lower cost in the production grants a higher profit and leads to a higher
business success.
Asset Orientation contains KPIs that measure the positive financial dimension of goods
or other resources that cycle within an activity. E.g. the value of a production machine
resembles an asset that is stored within the production area.
Innovative Potential is the ability of a VEE to create ideas and to successfully lead
them into the market. This includes a certain level of creativity as well as successful
innovation management to reach for the market.
Customer Orientation groups all measurements that are connected to the satisfaction
of the customers. Typical KPIs are the ratio of customer complaints or the support
costs.
Network Orientation describes the objective of an optimal collaboration within the

VEE. This includes typical measurements like the response or reaction time of the
corresponding partners.
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5 IMPLICATIONS FOR THE MRC AND THE VIF

Since this deliverable aims to provide the grounding theoretical floor for the Virtual Innovation
Factory and Mission Control Room, this section resumes the specifications that have been
elicited throughout the previous sections of this deliverable.
5.1 The Mission Control Room (MCR)

Requirement Specification of MCR is based on four inputs: (a) user requirements considered
in WP7 (b) conceptual thinking paradigm considered in WP2 and 3, (c) technology
considered in WP 6 and (d) market needs considered in WP3 with respect to MCR.
This section therefore focuses on the Virtual Enterprise Modelling Framework in particular on
the Value Production Space Reference Framework, which has to be supported by the MCR.
There are four processes required in setting up MCR (1) Design of the VPS Process, (2)
Execution processes of the Plan, Source, Build and Deliver Phases in the VPS, (3) Monitoring
processes to observe the KPIs and (4) Intelligent reflection processes to derive iterative
improvements.
The following requirements have been derived from the VPS framework:
(1) The design phase has to support the VE planning, building and governance. Following
the philosophy of IT-supported management approaches, the approach to plan, build
and govern a VE will be supported with concept models including relevant
functionality.
(2) The execution phase requires business processes on different levels. Reflecting the
aforementioned business processes of the VPS, MCR deals with strategic processes,
weakly structure processes, well structure processes and formalised processes. Hence
processes are either interpreted and performed by human experts, by machines or in a
hybrid manner. IT-supported management approach from MCR hence required to
proved appropriate concept models for each business process and relevant interfaces
to different execution environments.
(3) Business processes are used in different ways (i) as guidelines to check if agreed and
quality assured network policies are adhered, (ii) as training environment to document
and define each activity, responsibility and role, (iii) as testing environment in order to
perform a preparatory test run of a newly created VE and finally (iv) as a resulting
document itself when constructing logistics, component compilation, stock keeping or
shipment. MCR hence provides concept models and functionality to perform such
tasks during the execution phases.
(4) KPIs are seen as virtualisation instruments in order to enable the monitoring of
physical production in a digital environment such as BIVEE. Hence MCR enables KPIs to
be defined, connected to concrete measures and continuously updated in order to
present a monitoring cockpit.
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(5) Reflection processes are intelligent activities of experts and responsible managers that
is supported by MCR in providing a set of reports with different viewpoints. Feedback
mechanisms such as known from mobile apps or Web 2.0 are tools to enable
knowledge harvesting from that reflection processes.
These MCR requirements are only a high level list of topics that are further analysed and
described in D3.1 Sate of the Art Mission Control Room specification.
MCR as all BIVEE components belongs to the digital environment; hence interfaces to the real
executive environment of the end users are required to export the MCR content which are
concept models into the physical environment as well as virtualising the physical
environment back into the digital environment of MCR.
Flexible interfaces supporting human and machine interaction are therefore essential for the
MCR.
For detailed discussion MCR, please refer to D3.1 State of the Art and Mission Control Room
specification.
5.2 The Virtual Innovation Factory

The Virtual Innovation Factory should derive its design, planned for deliverable D4.1, basically
from 3 main inputs coming from different deliverables: the BIRF, as explained in this
deliverable; the end-user requirements as described in deliverables 6.11 and the validation
cases as outlined in D7.11.
In this last deliverable D7.11 two scenarios are described for the validation cases, one
describes the situation AS-IS of the innovation & improvement activities of the both BIVEE end
users (AIDIMA & LOCCIONI); the other describes the same validation use case but in a scenario
TO-BE using the BIVEE platform and in particular the MCR and VIF applications. It is important
to remark that this TO-BE scenario has been developed in synchrony and synergy with this
deliverable D2.2 and therefore it is bound to change (and be more precise) when the actual
development of the applications will be finalized.
Given this, the further implication that comes out of this deliverable concerning the structure
of Business Innovation Space and its expected development of the Virtual Innovation Factory
are the following:
1) The Virtual Innovation Factory will be build upon 4 main building blocks defined in this
deliverable as innovation waves; on a development level this implies a functional block
that will be able to manage the flow of activities between the waves and inside them.
We envisage this as the real core element of the VIF be able to give the user maximum
flexibility in order to customized the innovation cycle as closer as possible to the everchanging business needs.
2) The document based structure of each activity of each wave implies a variety of
formats yet to be defined. What we know at this stage is that each document should
then be inserted by the user or a group of user into the system in order to proceed
into the innovation cycle. This implies a system of checks for completeness and an
order of prioritizing of the documents. Mandatory Patterns among documents are
expected to be set and possibly change in due course.
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3) Different roles and different actors are involved in each wave. Actually this is a
characterization given by the VE environment: each wave is expected to have a
previous search and building of team form different sources. This implies at the level
of development another central component that manages the user roles &
permissions for each wave.
4) KPI are used in order to monitor completeness of document realization in each activity
of each wave but as well to monitor qualitative & quantities indicators regarding the
progress & profitability of each idea as it moves through innovation cycle.
5) In order for the document to be semantically annotated, and therefore semantically
searched form inside BIVEE sources or outside them, a connection between the PIKR
and the VIF should be planned and delivered; also a connection between the VIF and
MCR is envisaged since the is a flux of information described in this deliverable,
between the last wave of the VIF and first phase of the MCR.
Resuming, these are the very high level specifications and requirements captured form this
deliverable. The deliverable that willl take tare of the design of the VIF (D4.1) will as well
incorporate requirements coming from the State of the Art in innovation management
platforms and from the end user requirement document D7.11.
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6 CONCLUSION
This deliverable focuses on the development of the BIVEE Framework, aiming to enable
distributed innovation processes in Virtual Enterprise Environments. To meet this task, the
BIVEE Framework is comprised of three main parts, each to accomplish certain tasks:
The Virtual Enterprise Modelling Framework (VEMF) is aimed at the setup of the
Virtual Enterprise itself, and the structure of its production processes. Therefore, it is
divided into two sub-sections:
o
The Virtual Enterprise Framework (VEF) provides a set of activities to setup the
Virtual Enterprise. This includes tasks to define a common vision, strategy,
policies, and rules, to develop a common business plan and to agree on certain
business objectives along with their prioritization.
Moreover, the VEMF defines and structures the common production

processes. Therefore, the four phases of the SCOR-model have been adapted:
Plan, Source, Build, and Deliver. The aligned processes have been defined with
respect to the SCOR-model, the VRM and in tight cooperation with the BIVEE
end-users.
The Business Innovation Reference Framework (BIRF) should not be comprehended as

a strictly enforced structure, but merely as a guiding reference. Along with a reference
to innovation activities, it contains an input/output mapping of different innovation
areas. Therefore it is as well divided into two sub-sections:
o
Firstly, the BIRF intends to structure and support the development of ideas
towards the creation of innovations. To realize this concept, the four waves of
Creativity, Feasibility, Prototyping, and Engineering have been introduced. The
innovation activities are linked to these overlapping waves.
A set of templates for input/output mapping of the innovation activities is

given to guide the information management and to distinguish between the
different areas of innovation that are treated within the BIVEE Framework:
Product, Service, Process, and Technology Innovation.
The Monitoring Framework (MF) that defines two sets of KPIs to allow the
management of the production (P-KPIs) and of the innovation activities (I-KPIs). Each
of the KPIs is aligned to one of eight business objectives.
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7 REFERENCES
[1]
[2]
[3]
[4]
[5]
[6]
[7]
[8]
[9]
[10]
[11]
[12]
[13]
[14]
[15]
Camarinha-Matos, L. M.; and Afsarmanesh, H. (2005) Collaborative networks: a new

scientific discipline, Journal of Intelligent Manufacturing, 16, pp. 439452.
Chesbrough, H. (2003) Open Innovation: The new Imperative for Creating and Profiting
from Technology. Boston, Massachussetts: Harvard Business School Press.
Teece, D. J. (2011) Strategy, Innovation and the Theory of the Firm. Edward Elgar
Publishing Limited.
OECD, Eurostat (2005) The Oslo Manual, 3rd edition - Guidelines for collecting and
interpreting
innovation
data.
Online
Resource:
http://browse.oecdbookshop.org/oecd/pdfs/free/9205111e.pdf, Accessed 08.08.2012
Lhring, N. (2006) Coordination of innovation projects (translated from german),
Technische Universitt Hamburg-Harburg, Wiesbaden, Deutscher Universitts-Verlag.
Dutton, John, and Annie Thomas (1985) Relating technological change and learning by
doing, in: Rosenbloom, R.D. (ed.), Research on Technological Innovation, Management,
and Policy, 2 pp.187-224, Greenwich, CT: JAI Press.
Rogers, E. (2003) Diffusion of Innovations, 5th ed., The Free Press, New York.
Nonaka, I., Toyama, R., Konno, N. (2000) SECI, Ba and Leadership: a Unified Model of
Dynamic Knowledge Creation, Long Range Planning, Vol. 33, pp. 5-34.
Nonaka, I., Takeuchi, H. (1995) The knowledge-creating company: how Japanese
companies create the dynamics of innovation, Oxford University Press, New York.
Dalkir, K. (2005) Knowledge management in theory and practice, Elsevier ButterworthHeinemann, Amsterdam.
Makris, S.; Zoupas, P. and Chryssolouris, G. (2011) Supply chain control logic for
enabling adaptability under uncertainty, International Journal of Production Research,
49:1, pp. 121-137.
Bolstorff, P.; and Rosenbaum, R. (2007) Supply Chain Excellence: A Handbook of
Dramatic Improvement Using The SCOR Model, Mcgraw-Hill Professional.
Kotelnikov, V. (2010) Systemic innovation. Accessed on March 23, 2012, at:
http://www.1000ventures.com/products/bec_mc_innovation_systemic.html.
Hanebuth, D. (2002) Rethinking Kaizen. An empirical approach to the employee
perspective. In: Felfe, J.(Ed.): Organizational Development and Leadership. Peter Lang,
Frankfurt am Main, pp. 5985.
Rother, M. (2009), Toyota Kata, McGraw-Hill
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8 ANNEXES
The annex holds the tables of the BIVEE Framework. This contains the VEMF (chapter 1), the
BIRF (chapter 2), and the MF (chapter 3).
1. Tables of the Virtual Enterprise Modelling Framework (VEMF)

Within this chapter, the tables of the three parts of the VEMF are listed: They concern the VEF
and the modelling framework for the production processes of the VEE.
1.1. Tables of the Virtual Enterprise Framework (VEF)

This chapter contains the tables of the Virtual Enterprise Framework (VEF). It consists of the
govern section (Table 2) and the plan section (Table 3).
Table 2: Govern processes of the Virtual Enterprise Framework (VEF)

Govern Virtual Enterprise
Name
Description
GVE01 - Rules & Objectives
To develop the strategy, vision, goals & business

objectives for the virtual enterprise
GVE02 - Process Policy
To establish the process performance criteria, priority

dimensions and supporting metrics.
To define the creation, management, storage,
distribution, retrieval and disposal of information in
the virtual enterprise.
GVE03 - Information Policy

GVE04 - Financial Policy
To define the accounting, financial decision support,

routing and reporting for the virtual enterprise.
GVE05 - Asset Policy
To define the use of Intellectual, Brand, Physical,

Human, and working capital of the virtual enterprise.
To define the way the virtual enterprise partners will
interact with the stakeholders as a corporate citizen to
comply with regulation
To define rules & policies governing partner
interaction.
To define how the Virtual Enterprise will deal with
changing external/internal factors and evolve to meet
stakeholder expectations.
GVE06 - Organizational Policy

GVE07 - Extended Network Policy
GVE08 - Change Guidelines
GVE09 - Compliance Policy
To define how the virtual enterprise partners will

comply with regulations and legal requirements.
GVE10 - Lifecycle Policy
Define lifecycle policies of a virtual enterprise.
Table 3: Plan processes of the Virtual Enterprise Framework (VEF)

Plan Virtual Enterprise
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Name
PVE01 - Gather VE Requirements
PVE02 - Assess VE Resources

PVE03 - Align VE Resources
PVE04 - Create VE Business Plan
Description
The process of gathering Virtual Enterprise
requirements necessary to fulfill market demand for
comparison against available resources.
The process of assessing Virtual Enterprise resources
for alignment with requirements needed to fulfil
market demands.
The process of aligning demand with required
resources to capitalize on market opportunities.
The establishment and communication of plans and
actions over appropriate time horizons representing a
projected appropriation of Virtual Enterprise resources
to meet market requirements
1.2. Table for Modelling the Production Processes

Table 4: VEMF: Phases and processes related to production
Phases
Plan
Phase
Source
Phase
Build
Phase
Deliver
Phase
VEMF: Value Production Space Processes and Phases

Processes
Short description
VPS-P01 Sales Trend
Results of an initial market analysis show demands
Analysis
for production
An order may initiate a production process - needs
VPS-P02 Order Evaluation
to be evaluated
VPS-P03 Product Definition Order analysis and product allocation
VPS-P04 Network Setup
Creation of a network to fulfil production demands
Analysis of individual stocks for purchase
management
VPS-S02 Supplier Selection
Selection of suppliers for raw materials
VPS-S03 Purchase
Allocation of resources for production
Management
VPS-S04 Component Storage Storage of allocated resources
VPS-B01 Component
Manufacturing of components
Manufacturing
VPS-B02 Finishing
Final post-processing of the production
VPS-B03 Production
Assembly of components
Assembly
VPS-B04 Quality Control
Quality checks of manufactured goods
VPS-D01 Packing
Packaging and preparing for delivery
VPS-D02 Order Preparation Commissioning of ordered products
Carrier selection and shipping of manufactured
VPS-D03 Shipping
goods
VPS-D04 Delivery
Final release and delivery of manufactured goods
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2. Tables of the Business Innovation Reference Framework (BIRF)

This chapter contains the reference framework for activities within innovation projects and the
templates for the input/output mapping within, according to the specific areas of innovation.
The BIRF distinguishes between information that is processed in all areas and those within
product, service, and process innovation. The description of the areas of innovation and
improvement is provided in deliverable 2.1.
2.1. BIRF: Reference-Tables for Innovation Activities

Table 5: BIRF: Waves and activities related to innovation
Waves
Creativity
Wave
Feasibility
Wave
BIRF: Business Innovation Space Activities and Waves

Activities
Description
BIS-C01 Idea & Solution
This initial activity produces an idea
Generation
First check of the idea
Analysis
BIS-C03 Initial Market
First market check and approximation of expected
Analysis
turnover
BIS-C04 Final Solution
Assessment
Decision to proceed or not with the idea validation
Analysing and comparing the available and needed

resources
Creating a feasibility study of the concept for

further processing

BIS-P01 Resource
Prototyping Allocation
Wave
BIS-P03 Validate Prototype
BIS-E02 Build and
Optimize
Engineering
Wave
BIS-E04 Release
Approval or rejection of the concept

Allocation of resources for prototype design
Designing of the prototype
Validation and improvement of the design
Allocation of resources for final engineering
Building and optimizing the solution
Marketing, communication and sales activities to
support the launch of the solution
Final process to support the production of the
solution
Table 6: BIRF input/output of general innovation activities

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Scientific knowledge
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Scientific knowledge enables engineering of a solution and idea creation

BIS-C01 Idea & Solution Generation; BIS-E03 Launch Planning
Customer data
Customer date may influence the idea generation
BIS-C01 Idea & Solution Generation; BIS-E03 Launch Planning
Customer issues
Issues raised by customers may be adopted by ideas
Idea Description
Represents a first description of the idea
Idea Ownership
Information about the owner of the idea
Destination
Objective related information concerning the next steps
VEE compliance and rules
Compliance policies and rules to guide the actions of the network
Competence availability
Availability of competence within the network
BIS-C04 Idea Final Assessment; BIS-F01 Resource Analysis; BIS-F02 Feasibility
Study
Market knowledge
Knowledge about the market generated by market research
Market report
Report on the market situation concerning the market the idea reaches for
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Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:

Competence allocation
Summary of idea relevant competencies within the network
BIS-C04 Final Solution Assessment
Internal/external resource map
Roadmap of the competencies within the network
BIS-F02 Feasibility Study; BIS-P01 Resource Allocation; BIS-E01 Acquire
Resources
Feasibility Study
The study on the feasibility on the concept
Budget specification
Estimated budget needed to realize the idea
Bill of Materials
Allocation of necessary raw material and equipment for further progressing
Cost Analysis
Information about the occurring costs until the release
Marketing roadmap
Information about the procedure and strategy of the marketing
BIS-E04 Release
Table 7: BIRF - input/output of product innovation activities
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Required production capabilities

Production capabilities used to realize the product idea
BIS-C04 Final Solution Assessment; BIS-F02 Feasibility Study
Preliminary product specification
First specification of the new product
BIS-F01 Resource Analysis; BIS-F02 Feasibility Study
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Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Idea description
Represents a first description of the idea
Product concept report
Detailed description of the new product and the realization process
BIS-P01 Resource Allocation; BIS-P02 Design Prototype; BIS-P04 Validate
Prototype; BIS-E01 Acquire Resources; BIS-E03 Launch Planning
Routing Instructions
Information on the routing of the resources for further progressing
BIS-P02 Design Prototype; BIS-P03 Create Prototype; BIS-E02 Build and
Optimize
Design change requests
Changes on the design requested after post-design experiences
BIS-P03 Create Prototype; BIS-P04 Validate Prototype; BIS-E01 Acquire
Resources; BIS-E02 Build and Optimize
Components of purchase
Description of external components that are included into the design
BIS-P03 Create Prototype
Product Design
Information on the design of the product (geometrical, technical, electrical..)
BIS-P03 Create Prototype; BIS-P04 Validate Prototype; BIS-E02 Build and
Optimize
Production compliance and standards
Agreed compliance and standards concerning the collaborative production

Optimize
Bill of Materials
Allocation of necessary raw material and equipment for further progressing
Engineering Resource Routing Instructions
Information on the routing of the resources for further progressing
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Created in:
Used in:

Table 8: BIRF - input/output of service innovation activities
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Required service capability

Availability of required ressources and competencies
Preliminary service specification
First description of the service idea after initial analysis
BIS-C03 Initial Market Analysis; BIS-C04 Analysis of Next Steps; BIS-F01
Resource Analysis; BIS-F02 Feasibility Study; BIS-F03 Proof of Concept
Recommended personnel skill development
Competencies that are insourced by skill development
BIS-F02 Feasibility Study; BIS-F03 Proof of Concept
Service concept
The complete description of the service concept
BIS-P01 Resource Allocation; BIS-P03 Create Prototype; BIS-P04 Validate
Bill of supplement equipment
Equipment necessary for the service execution
BIS-P01 Resource Allocation; BIS-E01 Acquire Resources
Optimize
Service design change requests
Change requests of the service that evolve after prototype design
Resources of purchase
External resources necessary for the execution of the service
Optimize
Service process descriptions
Information about the execution of the service concept (Charts, rules, time,
place, etc.)
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Created in:
Used in:
Description:
Created in:
Used in:

Optimize
Customer Relations compliance and standards
Agreed compliance and standards concerning the Customer Relations
BIS-C02 Idea & Solution Analysis; BIS-P03 Create Prototype; BIS-P04 Validate
Prototype; BIS-E02 Build and Optimize
Table 9: BIRF - input/output of process innovation activities
Required process development capability
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
Availability of required resources and competencies needed for further

process development
Preliminary process specification
First description of the process idea after initial analysis
BIS-C03 Initial Market Analysis; BIS-C04 Analysis of Next Steps; BIS-F01
Resource Analysis; BIS-F02 Feasibility Study; BIS-F03 Proof of Concept
Recommended personnel skill development
Competencies that are insourced by skill development
BIS-F02 Feasibility Study; BIS-F03 Proof of Concept
Process concept
The complete description of the process concept
BIS-P01 Resource Allocation; BIS-P03 Create Prototype; BIS-P04 Validate
Raw materials and machine tools
Equipment and input necessary for the process execution
Optimize
Process design change requests
Change requests of the process that evolve after prototype design
External resources of purchase
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Description:
Created in:
Used in:
Description:
Created in:
Used in:
Description:
Created in:
Used in:
External resources (machines, competencies) necessary for the execution of

the Process
Optimize
Process execution schedule
Information about the execution of the process (Charts, rules, time, place,
etc.)
Optimize
Production compliance and standards
Agreed compliance and standards concerning the common production
processes
BIS-C02 Idea & Solution Analysis; BIS-P03 Create Prototype; BIS-P04 Validate
Prototype; BIS-E02 Build and Optimize
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3. Tables of the Monitoring Framework (MF)

This subchapter contains the key performance indicator tables for Innovation (I-KPIs, Table 10) and Production (P-KPIs, Table 11).
Table 10: Innovation KPIs (I-KPIs) of the Monitoring Framework
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Activity
Business Objective
Velocity
Generation
Cost Orientation
Generation
Asset Orientation
Generation
Network
Generation
Orientation
Asset Orientation
Generation
Generation
Generation
Customer
Generation
Orientation
Asset Orientation
Generation
Velocity
Analysis
Cost Orientation
Analysis
Cost Orientation
Analysis
KPI
Cycle time (Idea
Generation)
UOM
Description
days/hours
The time between start and end of the activity
Costs (Idea Generation)
All costs related to meetings (costs of the personnel

involved), travels
Expected market impact
The roughly estimated revenue of innovation
Number of new contacts
The expected number of new partnership made

during idea development
Money spend on employee training/development
#/year
Number of new Ideas per year
Investment in Employee
Development
Number of new ideas per
year
Ratio of internal/external
ideas
Ratio of customer-driven
ideas
%
%
The ratio between ideas generated inside or outside

the organisation
The ratio between ideas generated by customers or
inside the organisation
Percent R&D resources/investment devoted to new
products.
R&D Investment Ratio
Cycle time (Idea Analysis)
days/hours
Costs (Idea Analysis)

involved), travels
Expected Resource costs
The expected costs for further idea development
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Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Creativity
Wave
Feasibility
Wave
Feasibility
Wave
Feasibility
Wave
Feasibility
Wave
Feasibility
Wave

Internal/external
Asset Orientation
Analysis
competence ratio
Trade secrets
Analysis
Cycle time (Initial Market
Velocity
Analysis
Analysis)
Velocity
Expected break even time
Analysis
Costs (Initial Market
Cost Orientation
Analysis
Analysis)
Asset Orientation
Expected commercial value
Analysis
Customer
Number of publications
Analysis
Orientation
Cycle time (Analysis of next
Velocity
Assessment
steps)
Costs (Analysis of next
Cost Orientation
Assessment
steps)
Innovative Potential Number of Ideas in Pipeline
Assessment
BIS-F01 Resource
Cycle time (Feasibility
Velocity
Analysis
Study)
BIS-F01 Resource
Cost Orientation
Costs (Feasibility Study)
Analysis
BIS-F01 Resource
Cost Orientation
Expected design effort
Analysis
BIS-F01 Resource
Existing/needed knowledge
Analysis
ratio
BIS-F01 Resource
Network
Analysis
Orientation
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The ratio between internal and external

competencies within idea development
Number of trade secrets connected to the idea
days
days
#
days
Expected number of days needed until reaching the

profit zone
involved), travels
The expected revenue of the idea due to market
research
The number of own publications that have been
published in the area of the idea
involved), travels
Number of ideas/proposed products in the pipeline
or the investigation stage (prior to formal approval)
days

involved), travels
The expected effort needed for design
%
#
The ratio of available and needed knowledge for

further development
Deliverable D2.2
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Feasibility
Wave
Feasibility
Wave
Feasibility
Wave
Feasibility
Wave
Feasibility
Wave
Feasibility
Wave
Feasibility
Wave
Feasibility
Wave
Feasibility
Wave
Feasibility
Wave
Feasibility
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
BIS-F02 Feasibility
Study
BIS-F02 Feasibility
Study
BIS-F02 Feasibility
Study
BIS-F02 Feasibility
Study
BIS-F03 Proof of
Concept
BIS-F03 Proof of
Concept
BIS-F03 Proof of
Concept
BIS-F03 Proof of
Concept
BIS-F03 Proof of
Concept
BIS-F03 Proof of
Concept
BIS-F03 Proof of
Concept
BIS-P01 Resource
Allocation
BIS-P01 Resource
Allocation
BIS-P01 Resource
Allocation
BIS-P01 Resource
Allocation
Velocity

Study)
days
Cost Orientation
Network
Orientation
Network
Orientation
Response time (Feasibility

Study)
Reaction time (Feasibility
Study)
Deviation from planned
time
Cycle time (Proof of
Concept)
Reliability
Velocity
Cost Orientation
Costs (Proof of Concept)
minutes
hours

involved), travels
Average time needed by network partners for
response within the activity
reaction on requests within the activity
days
The current deviation from planned time
days

involved), travels
The current deviation from planned costs

costs (Proof of Concept)
Internal/external funding
ratio
Concept innovation index
(Proof of Concept)
Expected fulfilment ratio
Velocity
Cycle time (Resource

Allocation)
days
Cost Orientation
Costs (Resource Allocation)

involved), travels
hours

Cost Orientation
Asset Orientation
Cost Orientation
Network
Orientation

costs (Resource Allocation)
Response time (Resource
Allocation)
Page 58 of 69
The ratio of internal or external funding of the

concept
The number of new features provided by realization
of the concept
The ratio of planned specification that are fulfilled
by the concept
Deliverable D2.2
the VEMF)
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
BIS-P01 Resource
Allocation
BIS-P01 Resource
Allocation
BIS-P02 Design
Prototype
BIS-P02 Design
Prototype
BIS-P02 Design
Prototype
BIS-P02 Design
Prototype
BIS-P02 Design
Prototype
BIS-P02 Design
Prototype
BIS-P02 Design
Prototype
BIS-P02 Design
Prototype
BIS-P02 Design
Prototype
BIS-P02 Design
Prototype
Prototyping
Wave
Prototyping
Wave
Network
Orientation
Network
Orientation
Reliability
Velocity
Cost Orientation
Cost Orientation
Cost Orientation
Cost Orientation
Reaction time (Resource

Allocation)
hours
Number of design changes

(Design Prototype)
Cycle time (Design
Prototype)
Costs (Design Prototype)
costs (Design Prototype)
Design change costs (Design
Prototype)
Prototype Costs
Innovative Potential Number of designs initiated
Number of times the prototype design was changed
days

involved), travels
Costs allocated due to design changes
Average costs per unit
Network
Orientation
Network
Orientation
Concept innovation index

(Design Prototype)
Response time (Design
Prototype)
Reaction time (Design
Prototype)
hours
BIS-P02 Design
Prototype
Cost Orientation
Design Effort
Month
BIS-P03 Validate
Prototype
Reliability
Number of design changes

(Validate Prototype)
Page 59 of 69

hours
The number of designs that are created during the

design process
The number of new features provided by realization
of the concept
Average number of engineering man-months for
each design released to production. This ratio
shows the resources required to produce a design.
All non value-added work should be eliminated to
minimize this effort.
Number of times the prototype design was changed
Deliverable D2.2
the VEMF)
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Prototyping
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
BIS-P03 Validate
Prototype
BIS-P03 Validate
Prototype
BIS-P03 Validate
Prototype
BIS-P03 Validate
Prototype
BIS-P03 Validate
Prototype
BIS-P03 Validate
Prototype
BIS-P03 Validate
Prototype
BIS-P03 Validate
Prototype
BIS-E01 Acquire
Resources
BIS-E01 Acquire
Resources
BIS-E01 Acquire
Resources
BIS-E01 Acquire
Resources
BIS-E01 Acquire
Resources
BIS-E01 Acquire
Resources
BIS-E02 Build and
Optimize
Reliability
Average failure rate
Ratio of successful prototype tests
Velocity
Cycle time (Validate

Prototype)
days
Cost Orientation
Costs (Validate Prototype)

involved), travels
Costs allocated due to design changes
Design change costs

(Validate Prototype)
costs (Validate Prototype)
Voice of customer
performance of prototype
Response time (Validate
Prototype)
Reaction time (Validate
Prototype)
Supplier on time delivery
variance
Cycle time (Acquire
Resources)
hours
Cost Orientation
Costs (Acquire Resources)
Network
Orientation
Network
Orientation
Network
Orientation
Response time (Acquire

Resources)
Reaction time (Acquire
Resources)
Cost Orientation
Cost Orientation
Customer
Orientation
Network
Orientation
Network
Orientation
Reliability
Velocity
Velocity
hours
days
days
hours
hours
Cycle time (Build and

Optimize)
days
Page 60 of 69
Rating of the prototype by a test group representing

the customer
Average variance between planned and actual
delivery date per supplier
involved), travels
Deliverable D2.2
the VEMF)
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
BIS-E02 Build and

Optimize
BIS-E02 Build and
Optimize
BIS-E02 Build and
Optimize
BIS-E02 Build and
Optimize
BIS-E02 Build and
Optimize
BIS-E02 Build and
Optimize
BIS-E02 Build and
Optimize
BIS-E02 Build and
Optimize
BIS-E02 Build and
Optimize
BIS-E02 Build and
Optimize
BIS-E03 Launch
Planning
BIS-E03 Launch
Planning
BIS-E03 Launch
Planning
BIS-E03 Launch
Planning
BIS-E03 Launch
Planning
BIS-E03 Launch
Velocity
Adaptability
Adaptability
Total setup time

Downside production
adaptability
Upside production
adaptability
days
%
%
Time needed to initiate production

Describing the ability to produce reduced numbers
due to changed needs during this activity
Describing the ability to produce increased numbers
involved), travels
Storage space costs of all components within this
activity for a specific project
Expenses to train personnel to fulfill tasks related to
the project
Cost Orientation
Costs (Build and Optimize)
Cost Orientation
Storage space costs
Cost Orientation
Personnel training costs
Cost Orientation
Investment errors
Money spend on unnecessary issues
Cost Orientation
Equipment utilization rates
Ratio of utilization for each machine or equipment
Network
Orientation
Network
Orientation
Response time (Acquire

Resources)
Reaction time (Acquire
Resources)
Cycle time (Launch
Planning)
Velocity
hours
hours
days
Cost Orientation
Costs (Launch Planning)
Cost Orientation
Product Costs
Cost Orientation
Cost/budget ratio
Customer
Orientation
Network
Ratio of informed
customers
Response time (Launch
Page 61 of 69
%
hours

involved), travels
Costs connected to a single product/service
(assembly cost, .)
Ratio between the raised budget and the appearing
costs
The Ratio between the intended and actual
customers informed about the launch
Deliverable D2.2
the VEMF)
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Engineering
Wave
Planning
BIS-E03 Launch
Planning
Orientation
Network
Orientation
Planning)
Reaction time (Launch
Planning)
BIS-E04 Release
Reliability
Post release design changes
Number of redesign cycles after launch
BIS-E04 Release
Velocity
Cycle time (Release)
days
BIS-E04 Release
Velocity
Product launch variance
days
Time between the scheduled and actual release
BIS-E04 Release
Adaptability
Upside shipment
adaptability
Ratio of optional shipment increase during release
BIS-E04 Release
Cost Orientation
Costs (Release)

involved), travels
BIS-E04 Release
Cost Orientation
Unit release costs
Costs created by the release per unit
BIS-E04 Release
Similar concepts already on

the market
Number of similar concepts that are already on the

market on time of release
Warranty cost ratio
Ratio of warranty costs and overall unit costs
Ratio of complaints
Ratio of customer complaints per unit
Idea Yield
Ratio between ideas proposed and ideas developed
Number of released designs for production.

Number of initiated designs are unique designs
approved by engineering with intent to produce.
Design realization should be optimized because if a
design is initiated but not realized, the initiated
design work is non value-added. to this ratio is
optimized, the organization becomes more focused.
BIS-E04 Release
BIS-E04 Release
BIS-E04 Release
BIS-E04 Release
Customer
Orientation
Customer
Orientation
Cost Orientation
Design Realization
Page 62 of 69
hours

Deliverable D2.2
the VEMF)
Table 11: Production KPIs (P-KPIs) of the Monitoring Framework

Wave
Plan Phase
Plan Phase
Plan Phase
Plan Phase
Plan Phase
Plan Phase
Plan Phase
Plan Phase
Plan Phase
Plan Phase
Plan Phase
Plan Phase
Plan Phase
Source
Phase
Activity
VPS-P01 Sales Trend
Analysis
VPS-P01 Sales Trend
Analysis
VPS-P01 Sales Trend
Analysis
VPS-P02 Order
Evaluation
VPS-P02 Order
Evaluation
VPS-P02 Order
Evaluation
VPS-P02 Order
Evaluation
VPS-P02 Order
Evaluation
VPS-P03 Product
Definition
VPS-P03 Product
Definition
VPS-P03 Product
Definition
VPS-P04 Network
Setup
VPS-P04 Network
Setup
Business Objective
Velocity
KPI
Study)
Cost Orientation
Asset Orientation
Expected break even time
Reliability
Used/Available Capacity
Ratio of errors during order
capture
Reliability
Reliability
Velocity
Cost Orientation
Ratio of re-processed orders

Cycle time (Order
Evaluation)
Velocity
Costs (Order Evaluation)

Ratio of orders containing
errors
Cycle time (Order
Evaluation)
Cost Orientation
Costs (Order Evaluation)
Velocity
Cycle time (Network Setup)
Cost Orientation
Costs (Network Setup)
Velocity
Cycle time (Stock Analysis)
Reliability
Page 63 of 69
UOM
days
days
%
%
%
days
%
days
days
days
Description
All costs of the activity measured in
Expected number of days needed until reaching the
profit zone
Ratio of capacity utilization
Ratio of wrong order captures
Percentage of orders that have to be re-processed
due to errors or changes
Ratio between the overall number of orders and
those with errors
Deliverable D2.2
the VEMF)
Source
Phase
Source
Phase
Source
Phase
Source
Phase
Source
Phase
Source
Phase
Source
Phase
Source
Phase
Source
Phase
Source
Phase
Source
Phase
Source
Phase
Source
Phase
Source
Phase
Source
Phase
Cost Orientation
Costs (Stock Analysis)
Asset Orientation
Redundant stock
Asset Orientation
Network
Orientation
Network
Orientation
Immobilized assets ratio

Response time (Stock
Analysis)
Reaction time (Stock
Analysis)
Cycle time (Supplier
Selection)
Time spend on search of
suppliers
Time to suppliers order
acceptance

VPS-S02 Supplier
Selection
VPS-S02 Supplier
Selection
VPS-S02 Supplier
Selection
VPS-S02 Supplier
Selection
VPS-S02 Supplier
Selection
VPS-S02 Supplier
Selection
VPS-S02 Supplier
Selection
VPS-S02 Supplier
Selection
VPS-S02 Supplier
Selection
VPS-S03 Purchase
Management
Velocity
Velocity
Velocity
Adaptability
Adaptability
Cost Orientation
Cost Orientation
Network
Orientation
Network
Orientation
Velocity
Supplier Importance
Ratio of fulfilled delivery
terms
Costs (Supplier Selection)
Insourced/outsourced
resources ratio
Response time (Supplier
Selection)
Reaction time (Supplier
Selection)
Cycle time (Purchase
Management)
Page 64 of 69
%
h
h
days
hours
days
%
%
%
hours
hours
days

Assets bound in redundant stock
Comparing the investments in immobile inventory to
the annual sales
Hours of work spend on searching for suppliers
Average time needed by suppliers to accept orders
Ratio between raw material costs and
manufacturing costs
The ratio between the agreed and the real delivery
terms
The ratio comparing the savings/costs of internal
and external resources
Deliverable D2.2
the VEMF)
Source
Phase
Source
Phase
Source
Phase
Source
Phase
Build Phase
Build Phase
Build Phase
Build Phase
Build Phase
Build Phase
Build Phase
Build Phase
Build Phase
Build Phase
Build Phase
Build Phase
VPS-S03 Purchase
Management
VPS-S03 Purchase
Management
VPS-S04 Component
Storage
VPS-S04 Component
Storage
VPS-B01 Component
Manufacturing
VPS-B01 Component
Manufacturing
VPS-B01 Component
Manufacturing
VPS-B01 Component
Manufacturing
VPS-B01 Component
Manufacturing
VPS-B01 Component
Manufacturing
VPS-B01 Component
Manufacturing
VPS-B01 Component
Manufacturing
VPS-B01 Component
Manufacturing
VPS-B02 Finishing
VPS-B02 Finishing
VPS-B03 Production
Assembly
Cost Orientation
Asset Orientation
Costs (Purchase
Management)
Velocity
Stock turn
Cycle time (Component
Storage)
Cost Orientation
Costs (Component Storage)
Reliability
Cost Orientation
Accident frequency
Average manufacturing
time
Cycle time (Component
Production)
Downside production
adaptability
Upside production
Adaptability
Costs (Component
Production)
Asset Orientation
Network
Orientation
Network
Orientation
Velocity
Cost Orientation
Machinery productivity
Response time (Component
Production)
Reaction time (Component
Production)
Cycle time (Finishing)
Costs (Finishing)
Reliability
Production failure ratio
Velocity
Velocity
Adaptability
Adaptability
Page 65 of 69
days
#/hours
hours
days
%
%
%
hours
hours
days

This KPI monitors the inventory turnover
Average rate of severe accidents per working hour
Average manufacturing time needed per component
Describing the ability to produce reduced numbers
Describing the ability to produce increased numbers
Ratio of machine working hours compared per time
Ratio of units with failures and total produced units
Deliverable D2.2
the VEMF)
Build Phase
Build Phase
Build Phase
Build Phase
Build Phase
Build Phase
Build Phase
Build Phase
Deliver
Phase
Deliver
Phase
Deliver
Phase
Deliver
Phase
Deliver
Phase
Deliver
Phase
Deliver
Phase
VPS-B03 Production
Assembly
VPS-B03 Production
Assembly
VPS-B03 Production
Assembly
VPS-B03 Production
Assembly
VPS-B03 Production
Assembly
VPS-B04 Quality
Control
VPS-B04 Quality
Control
VPS-B04 Quality
Control
Velocity
Velocity
Cost Orientation
Network
Orientation
Network
Orientation
Average assembly time

Cycle time (Production
Assembly)
Reliability
Costs (Production Assembly)

Response time (Component
Production)
Reaction time (Component
Production)
Failure ratio at quality
control
Velocity
Cycle time (Quality Control)
Cost Orientation
Costs (Quality Control)
VPS-D01 Packing
Velocity
Cycle time (Packing)
VPS-D01 Packing
Cost Orientation
Costs (Packing)
VPS-D01 Packing
VPS-D02 Order
Preparation
VPS-D02 Order
Preparation
Cost Orientation
Velocity
Unit packaging costs

Cycle time (Order
Preparation)
Cost Orientation
Costs (Order Preparation)
VPS-D03 Shipping
Velocity
VPS-D03 Shipping
Velocity
Cycle time (Shipping)

Time spend on search of
carriers
Page 66 of 69
hours
days
hours
hours
%
days
days
days
days
hours
Average assembly time needed per unit

Ratio of units with failures and total produced units
at quality control
Average packaging costs per unit
Hours of work spend on searching for carriers
Deliverable D2.2
the VEMF)
Deliver
Phase
Deliver
Phase
Deliver
Phase
Deliver
Phase
Deliver
Phase
Deliver
Phase
Deliver
Phase
Deliver
Phase
VPS-D03 Shipping
Cost Orientation
Costs (Shipping)
VPS-D04 Delivery
Velocity
VPS-D04 Delivery
Velocity
Cycle time (Delivery)

Carriers average time for
delivery
VPS-D04 Delivery
Cost Orientation
Costs (Delivery)
VPS-D04 Delivery
Asset Orientation
VPS-D04 Delivery
Asset Orientation
Customer
Orientation
Customer
Orientation
Product profitability
Product contribution to
overall margin
VPS-D04 Delivery
VPS-D04 Delivery
days
hours
%
%

Average time needed by a carrier for the delivery of
units
Ratio between the individual margin and the sum of
sales
Ratio between the individual and the overall margin
Warranty cost ratio
Ratio of warranty costs and overall unit costs
Ratio of complaints
Ratio of customer complaints per unit
Page 67 of 69
Deliverable D2.2
the VEMF)
Page 68 of 69
Deliverable D2.2
the VEMF)
Page 69 of 69

D2.2 Specification of Business Innovation Reference

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D2.

Co-funded by the European Commission, contract n FP7-ICT-285746

Andrea Rossi (ATOS), Benjamin Knoke (BIBA), Nesat

D2.2 Specification of business innovation reference.pdf

IST Project Number

Business Innovation in Virtual Enterprise Environments

Co-funded by the European Commission, contract n FP7-ICT-285746

5 IMPLICATIONS FOR THE MRC AND THE VIF ................................................................................... 42

Tables of the Virtual Enterprise Modelling Framework (VEMF) ................................... 47

Tables of the Virtual Enterprise Framework (VEF) ................................................ 47

1.2. Table for Modelling the Production Processes ..................................................... 48

1 INTRODUCTION TO THE BIVEE FRAMEWORK

1.1 Differentiation between Innovation and Improvement

Figure 1: Overview on the relations between ideas, inventions and innovations

1.2 Main Activities within the BIVEE Framework

Figure 2: Overview on the main activities within the BIVEE framework

1.3 Content and Relations of the Sub-Frameworks

Figure 3: General contents of the sub-frameworks

1.4 Overview on the Innovation-Part of the BIVEE Framework

Figure 4: Overview on the innovation-part of the BIVEE Framework

1.5 Overview on the Production-Part of the BIVEE Framework

Figure 5: Overview on the Production-Part of the BIVEE Framework

1.6 The Knowledge Circle between BIS and VPS

Figure 6: The Knowledge Circle between BIS and VPS

2 VIRTUAL ENTERPRISE MODELLING FRAMEWORK (VEMF)

2.1 VEMF: The Virtual Enterprise Framework (VEF)

2.1.1 The Value Reference Model

Figure 7: VRM Process Map

2.1.2 Processes of the Plan and Govern Section of the VRM

Figure 8: Overview on the plan and govern sections of the VRM

Figure 9: The Govern Value Chain section of the VRM

Figure 10: The Govern Virtual Enterprise section of the VEF

Figure 11: The Plan Value Chain section of the VRM

Figure 12: The Plan Virtual Enterprise section of the VEF

2.2 VEMF: Modelling Framework for Production Processes

2.2.1 Supply Chain Operations Reference-Model

Figure 13: SCORE Process Map

2.2.2 Value Production Space Methodology based on the Waterfall Model

Figure 14: Business Process Management Systems Paradigm

2.2.3 Production Processes within the Virtual Enterprise

Figure 15: VEMF - Overview on the Plan-Phase

VPS-P01 Sales Trend Analysis

VPS-P02 Order Evaluation

An order may initiate a production process it therefore needs to be evaluated, if enough

VPS-P03 Product Definition

VPS-P04 Network Setup

Figure 16: VEMF - Overview on the Source-Phase

VPS-S01 Stock Analysis

Analysis of individual stocks for purchase management is typically a well-structured. The

VPS-S02 Supplier Selection

VPS-S03 Purchase Management

VPS-S04 Component Storage

Figure 17: VEMF - Overview on the Build-Phase

VPS-B01 Component Manufacturing

Final post-processing of the production are required to finish the production.

VPS-B03 Production Assembly

Assembly of components are production processes on a higher aggregation including logistics

VPS-B04 Quality Control

Figure 18: VEMF - Overview on the Deliver-Phase

VPS-D02 Order Preparation

2.3 Handling of Improvement Processes in Virtual Enterprises

3 THE BUSINESS INNOVATION REFERENCE FRAMEWORK (BIRF)

3.1 BIRF: Reference Framework for Innovation Projects

3.1.1 Innovation Waves & Innovation Gates